Shares of Avery Dennison fell almost 5% in early Thursday trading, while 3M shares moved up fractionally.

Regulators claimed that the merger would have reduced competition relating to the sale of office products, especially sticky notes and labels, resulting in higher prices for consumers. The government said it would sue to stop the combination.

Initially, 3M officials said they would contest the government’s action and were hoping to restructure the purchase in order to gain approval.